A COBRA election may appear late at first glance, but an inaccurate notice or shortened election period can change the analysis. Learn which dates matter and what employers should consider before making a final determination.
A recently terminated employee’s last day on our health plan was May 31, 2026. We mailed him a COBRA election notice by certified mail on June 9th and gave him until July 31st to return his election form and first premium payment.
The employee has just notified me that he wants to elect COBRA, even though the deadline I gave him has expired.
I know a little about this individual’s circumstances, and I would rather allow him to elect COBRA if there is an argument that his attempted election is timely. The post office shows that it tried to deliver the notice several times before the employee finally picked it up from a postal facility on June 23rd. In addition, as I look at the dates more closely, I think the original deadline I gave him may have been incorrect. As of what date does a COBRA election period begin to run: when coverage ended or when the election notice is mailed or received? And does the delay in delivery affect the outcome?
Based on the information you’ve provided, it appears the employee’s election period has passed. However, I do think the deadline you originally gave him was incorrect.
COBRA generally gives individuals who lose group health coverage at least 60 days to elect continuation coverage. This election period begins to run on the later of the date coverage is lost or the date the election notice is “provided,” which is generally interpreted as the date it was mailed.
Assuming the notice was sent to the correct address, the election period could not have begun before June 9, the date you mailed the notice. By measuring the election period from the date coverage ended, you incorrectly shortened the employee’s election period. Sixty days from June 9 would have been August 8, not July 31.
However, even if you started the election period on June 23, the date the employee picked up the notice from the post office, the election period has expired because more than 60 days have passed since then.
It is also incorrect to require payment of the first premium at the end of the election period. Individuals who elect COBRA generally have 45 days after the date of their election to make the initial premium payment. While employers may explain the premium amount and payment process in the election materials, they should not treat payment of the first premium as a condition of making a timely COBRA election.
You also indicated a preference for allowing the election. While COBRA doesn’t prevent employers from being more generous than the law requires, you would want to make sure your medical carrier (for fully insured plans) or stop-loss carrier (for self-insured plans) agrees to this.
For a related discussion of whether to allow an apparently late election, see our July 2025 Question of the Month.
Not a client of The Miller Group? Connect with one of our employee benefits advisors to learn how our compliance team can help you stay on track and confidently meet your obligations.
